HighPeak Energy (HPK) Q2 2026 earnings summary

Executive summary

• Q2 2026 production averaged 45.3 MBoe/d, 7% above the midpoint of guidance, with 64% oil and 83% liquids composition, and operating expenses 13% below guidance midpoint, driving strong free cash flow and balance sheet improvement.

• Net income for Q2 2026 was $82.3 million ($0.59 per diluted share), up from $26.2 million in Q2 2025, driven by higher realized commodity prices and derivative gains.

• Maintained disciplined capital allocation, operational efficiency, and cost control, supporting long-term value creation and shareholder returns.

• Accelerated completion activity and workover programs capitalized on favorable frac pricing and operational efficiencies.

• Strategic alternatives, including a potential sale, continue to be evaluated with no set timetable for conclusion.

Financial highlights

• EBITDAX for Q2 2026 was $147.6 million ($1.06 per diluted share), and for 1H 2026 totaled $281.1 million.

• Q2 2026 net income was $82.3 million; free cash flow was $37.6 million, with capex spend at $107.5 million reflecting accelerated frac activity.

• Operating revenues for Q2 2026 were $272.4 million, up 26% year-over-year.

• Unit lease operating expense (LOE) for Q2 2026 was $7.92/Boe, and for 1H 2026 averaged $7.56/Boe, 13% below guidance midpoint.

• Net debt as of June 30, 2026, was $1.054 billion, with $146.3 million in cash and cash equivalents.

Outlook and guidance

• Capital spending expected to decline significantly in the second half of 2026, supporting stronger free cash flow.

• 2026 capital budget is $255–$285 million, funded by cash, operations, and available credit.

• Production volumes anticipated to remain strong for the rest of 2026, with oil cut expected to return to 67%–68% for the remainder of the year.

• 2027 setup expected to mirror 2026 in terms of capital requirements and production volumes.

• Focus remains on operational flexibility, financial stability, and maximizing asset value in the Midland Basin.